5 Stocks Rising on Big Volume to Trade for Breakouts

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds a.0nd hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

With that in mind, let's take a look at several stocks rising on unusual volume recently.

The Royal Bank of Scotland Group

The Royal Bank of Scotland Group (RBS), through its subsidiaries, provides banking and financial products and services to personal, commercial, corporate and institutional customers worldwide. This stock is trading up 7% to $10.92 in Friday's trading session.

From a technical perspective, RBS is gapping up sharply higher here back above its 50-day moving average of $10.61 with strong upside volume flows. This stock recently formed a double bottom chart pattern at $10.07 to $10.02 a share. Following that bottom, shares of RBS have started to rip higher and it's now moving within range of triggering a near-term breakout trade. That trade will trigger if RBS manages to take out some key near-term overhead resistance at $11 a share with high volume.

Traders should now look for long-biased trades in RBS as long as it's trending above its 50-day at $10.61 and then once it sustains a move or close above $11 with volume that registers near or above 580,182 shares. If that breakout triggers soon, then RBS will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $11.46 to $12.

Triumph Group

Triumph Group (TGI), through its subsidiaries, is engaged in the design, engineering, manufacture, repair, overhaul and distribution of aero structures, aircraft components, accessories, subassemblies, and systems worldwide. This stock is trading up 12.5% to $65.40 in Friday's trading session.

From a technical perspective, TGI is soaring sharply higher here and gapping up huge to the upside back over its 200-day moving average of $63.61 with strong upside volume flows. This monster spike to the upside is now quickly pushing shares of TGI within range of triggering a near-term breakout trade. That trade will hit if TGI manages to take out some key overhead resistance levels at $66.50 to $66.65 and then above more resistance at $67.96 with high volume.

Traders should now look for long-biased trades in TGI as long as it's trending above Friday's current intraday low of $61.02 and then once it sustains a move or close above those breakout levels with volume that registers near or above 481,477 shares. If that breakout hits soon, then TGI will set up to re-test or possibly take out its 52-week high of $72.31.

AOL

AOL (AOL) provides various digital brands, products and services to consumers, advertisers, publishers and subscribers worldwide. This stock is trading up 11.1% to $43.77 in Friday's trading session.

From a technical perspective, AOL is gapping up sharply higher here back above its 200-day moving average of $42.70 with strong upside volume flows. This monster move to the upside on Friday has now pushed shares of AOL into breakout territory, since the stock has cleared some key near-term overhead resistance levels at $41.26 to $42.42 and its 200-day moving average. This spike to the upside is now quickly pushing shares of AOL within range of triggering another major breakout trade. That trade will trigger if AOL manages to clear Friday's current intraday high of $44.04 and then above some past overhead resistance at $45.15 with high volume.

Traders should now look for long-biased trades in AOL as long as it's trending above its 200-day at $42.70 or above Friday's current low of $41.64 and then once it sustains a move or close above those breakout levels with volume that hits near or above 924,381 shares. If that breakout hits soon, then AOL will set up to re-test or possibly take out its next major overhead resistance levels $48 to $49.50, or even $50.

Time

Time (TIME), together with its subsidiaries, operates as a media company that publishes magazines in the U.S., the U.K. and internationally. This stock is trading up 3.8% to $22.15 in Friday's trading session.

From a technical perspective, TIME is spiking notably higher here right above some near-term support at $20.97 with strong upside volume flows. This move to the upside on Friday is now starting to push shares of TIME within range of triggering major breakout trade above a number of key overhead resistance levels. That trade will trigger if TIME manages to clear its 50-day moving average of $22.56 and its 200-day moving average of $23.08 and then above some more overhead resistance at $23.75 with high volume.

Traders should now look for long-biased trades in TIME as long as it's trending above Friday's current intraday low of $21.44 and then once it sustains a move or close above those breakout levels with volume that hits near or above 952,998 shares. If that breakout triggers soon, then TIME will set up to re-test or possibly take out its next major overhead resistance levels at $25 to its 52-week high of $25.95. Any high-volume move above $25.95 will then give TIME a chance to make a run at $30.

Yelp

Yelp (YELP) operates a platform that connects people with local businesses in the U.S. This stock is trading up 6.5% to $50.09 in Friday's trading session.

From a technical perspective, YELP is soaring higher here right off its 50-day moving average of $46.85 with monster upside volume flows. this stock has been ripping to the upside the last two trading sessions, after shares saw a huge move on Thursday with heavy upside volume. Shares of YELP are now quickly moving within range of triggering a major breakout trade above some key near-term overhead resistance levels. That trade will hit if YELP manages to take out some near-term overhead resistance at $52.51 with high volume.

Traders should now look for long-biased trades in YELP as long as it's trending above its 50-day moving average of $46.85 and then once it sustains a move or close above those breakout level with volume that registers near or above 3.84 million shares. If that breakout develops soon, then YELP will set up to re-fill some of its previous gap-down-day zone from February that started at $57.70.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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